Credit Vocabulary

4. the person or institution that gives credit. This can be a bank, credit card company, or other financial institutions.
5. is money earned on the starting principal only. Calculated with formula :i = Prt
7. is a large amount of money paid at the start of a long-term payment plan. This is often used for large purchases.
9. is a special long-term loan, usually for a large amount of money. The lender owns a piece of your property until the loan is repaid. This is most commonly used on houses.
10. is money that is given to you temporarily and must be repaid. These are usually repaid in regular installments and are often used for large purchases like cars.
13. a chart that tracks ongoing payments, interest, and balance for a long-term loan.
15. is a protection plan that is paid into regularly.
16. is an expense that is always the same amount and is repeated at regular intervals.
17. is a cost that can or does change on a regular basis.

1. is money earned on both principal and money earned earlier on the account. This is calculated with the formula: A= P(1+i)n
2. money that you owe.
3. is a number that indicates how likely you are to repay a debt. Range from 300 to 850, a score of 850 is considered perfect.
6. is a series of equal payments made at regular intervals. These can be money paying down a debt, or money being paid out (e.g. lottery winnings).
8. is an amount placed into an account.
11. is buying now with the promise to pay later. Common examples include credit cards and line of credit.
12. the amount in an account. This can be an amount owing ( a debt) or an amount saved.
14. the length of time an agreement is in place. Virtually all financial arrangements have a term.